Crude oil is getting crushed

Near 2:40 p.m. in New York on Wednesday, West Texas Intermediate crude oil futures were down more than 3%, at around $51.30 per barrel. Brent crude, the international benchmark, fell nearly 3% to around $57.01.

WTI fell as much as 2% on Tuesday after news of Iran's nuclear agreement crossed overnight. The deal would lift economic sanctions that have been in place, and analysts are concerned that this could create a fresh glut of oil in an already oversupplied market.

The Iranian Oil Ministry estimates that the country would be able to boost its exports by 500,000 barrels per day when sanctions are removed.

But so far, analysts are not expecting this to have a huge impact on oil prices this year.

In a note on Wednesday, Goldman Sachs highlighted that Iranian production would only be gradual, since there needs to be substantial investment in oil fields before oil really begins to flow.

Earlier this morning, data from the Energy Information Adminstration showed that commercial crude oil inventories fell by 4.3 million barrels in the week ending July 10.

This followed two weeks of a build in stockpiles that were preceeded by nine weeks of declines.